Assetz Capital – An Introduction

Introduction

Assetz Capital is a P2P lending platform offering both property and business loan opportunities. Founded in 2012 it’s total lending to date is now in excess of £350 million. The minimum deposit for Assetz is £10 with a minimum loan part of £0.01. Deposits are made by bank transfer only and usually clear within 3 business days. Loan terms are generally between 12 and 60 months.

 

Assetz offers 5 different accounts to customers

Property Secured Account (PSA) – Target rate of return 5.50% per annum, monies secured against a fund of UK based property loans. Monies are auto-assigned and withdrawal is only available on the condition of a buyer being available at the time.

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30-Day Access Account (30DAA) – Target rate of return 5.10% per annum, monies are auto assigned to both business and property loans but require 30 days notice for a withdrawal dependant on market conditions. This account is also backed by a discretionary provision fund.

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Quick Access Account (QAA) – Target rate of return 4.10% per annum, monies are withdrawable (to your cash account) immediately depending on market conditions. Funds are lent against both UK business and property loans.

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Great British Business Account (GBBA) – Target rate of return 6.25% per annum, monies are auto-invested exclusively in to British Business loans. This account is also backed by a discretionary provision fund, withdrawal times can vary widely dependent on market conditions.

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Manual Lending Account (MLA) – Available rate of return up to 10.00% per annum, this is a traditional self select account, you choose the deal you want to lend to and how much you want to lend. Loans are available to both UK business and property.

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The Assetz accounts also offer a ‘Cash Sweep’ function. This means you set any usassinged monies to be swept in to the ‘Quick Access Account’ earning the target rate of 4.10% per annum while you wait for repaid funds to build before making a new investment using the funds from the QAA,  minimising cash drag.

Assetz are also authorised to offer an IFISA option meaning £20’000 can be invested a year tax free. Assetz Capital are fully regulated by the FCA.

Unbolted – 6 Month Results

6 Month Results

The first half year results for lending through the Unbolted platform are as follows  –

Expected ROI (Annualised) 7.20%
Actual ROI (Annualised) 8.90%

The ‘Expected ROI’ is taken from the Unbolted website. The ‘Actual ROI’ at 8.90% is obviously significantly higher than expected. This is for one main reason the ‘Expected’ takes in to account a sensible level of defaults whereas the ‘Actual’ is taken from the ‘Interest Earned and Accrued’ figure in the account. Now some people factor in a predicted default rate in to a portfolio, I’m not personally a fan of this technique as a requires a crystal ball and it can quickly become very confusing and complicated subtracting and then later adding figures to a rolling portfolio. So I view the Unbolted figure with a certain degree of reduced expectation.

Unbolted chooses not to publish up to date statistics so it’s difficult to know how the loan book is doing in terms of growth, but with a £5.00 minimum loan part allowing for easy diversification I’ve had no problems with new funds being assigned (with-in a few days) over the last 6 months. A note of caution though, Unbolted has a very narrow borrower clientele, indeed many of the loans are provided against chatel to a single action house. So the true diversification level can be a little opaque with Unbolted, something to consider when working out your own risk appetite.

Conclusion

I’m happy with my Unbolted experience so far. Unbolted seems to run a tight ship with decent quality loans following a rigorous due diligence process. Although no defaults have been realised in my first 6 months I do expect this to change over the coming months as defaults are always to be expected when lending.

We Lend Us – 6 Month Results

6 Month Results

The first results for the first 6 months of lending through the We Lend Us platform are as follows –

Expected ROI (Annualised) 12.00%
Actual ROI (Annualised) 6.70%

It’s not been a bad start to my lending journey with We Lend Us. The expected ROI is the average of my lending setting for my required return. The actual ROI might not look too good in comparison but in this time I adjusted my portfolio allocation meaning I lost one months provision fund (PF) payment on the balance. Had i not made the adjustment the ROI would have been c.8.00%. What i did find a little frustrating was there was no reference to this loss of PF payment as a result of such amendments on the site (at least at the time), I also emailed to query this lost payment at the time and received no response. As I direct result I allocated funds elsewhere in the following few months.

My We Lend Us return is on track to grow to double digits for the full year and could prove to be one of the strongest performers with-in my portfolio. When i started with We Lend Us their entire loan book totaled £32,000, by the end of month 6 this had grown to c£700,000. We Lend Us made an announcement recently that the Provision Fund Purchase Delay would be set to 35 days as of mid January 2019 for everybody, this is significantly more than my current setting and I await the impact this move will have on returns over the coming months.

So in conclusion, despite the minor communication issue I am still relatively happy with We Lend Us and look forward to future growth in 2019.

Unbolted – An Introduction

Introduction

Unbolted is a P2P platform established in 2013. Unbolted is a trading name for Open Access Finance Ltd . The platform offers borrowers four types of loan : a personal asset bridge loan; a sales advance loan; a bid now, pay later loan and a small business loan. From the lender perspective these loans fall in to three different protection levels : ‘Gold Trust’ insures lenders against a drop in gold price for loans secured against jewellery and watches ; ‘Provision trust’ used against most other loans types designed to be used in the event of a short fall in repayments to a lender (at the discretion of Unbolted) ; occasionally Unbolted offer unsecured loans usually to know and trusted borrowers.

For the most part Unbolted is an Auto-Invest platform. You pick which of the three loan types you want to invest in, deposit a minimum of £100 and diversify for as little as £5 per loan, click confirm and Unbolted will do the rest. Interest is accrued daily with an advertised annual return rate of around 7.2%.

The main account page

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Main account page for Unbolted

The account page is basic and I like basic.

Loans On Sale box – if you click the buy now button you will see any loans you can manually buy in to now. However these tend to be quite rare as most will opt for the ‘Auto Invest’ function which fill loans very fast. Be careful though as the available loans may well be ‘Unsecured’ loans that are less popular for ‘Auto Invest’. I’m not suggesting these loans are of any less quality but they will require reading on your part to work out if you are personally comfortable with the risk/reward on offer. The ‘Auto Invest’ button allows you to adjust your ‘Auto Invest’ preferences at any time as discussed previously.

Add or Withdraw Funds box – deposits via bank transfer, usually 2 working days to clear, minimum of £100. Withdrawal of ‘idle’ funds is immediate (24 hour bank processing) but withdrawal of assigned funds will require your loan parts to be sold/transferred first. Make sure you pause ‘Auto Invest’ first otherwise your funds will just go round in circles. Selling of loan parts is conditional to market availability of buyers, generally allow a few days per £1000 being sold.

My Portfolio box – shows your live headline figures. ‘Cash balance’ is idle funds and withdrawal-able at any time. Investment balance is the total you have assigned to live loan parts. ‘Total Portfolio Value’ is the two figures combine. You can also ‘View Portfolio’ and this will list every loan you are currently invested in. It includes details like loan type: start date; due date; last repayment date; loan status and loan part size.

My Returns box – shows you total platform deposits against your total interest earned to date.

My Recent Investments box – gives you a snapshot of your last five loans you invested in. You can view the full list by clicking ‘View Portfolio’.